Reinvestigate the case of a Nghe An tycoon appropriating 42,000 shares

Many issues "cannot be immediately clarified" in the case of Mr. Thai Luong Tri appropriating shareholders' assets, so the court cannot yet pronounce a verdict.

After 4 days of trial and deliberation, today the High People's Court in Hanoi returned the case file and reinvestigated the case of Thai Luong Tri (Chairman of the Board of Directors of Lao-Viet Minerals Joint Stock Company) and Duong Xuan Hai (Deputy Director) for forging seals and documents of agencies and organizations, abusing trust to appropriate property. The appeal hearing was opened because Mr. Tri and Hai appealed for their innocence.

The appellate court held that the investigation and trial at the first instance were incomplete, so it overturned the entire previous verdict of the Hanoi People's Court, which sentenced Tri to 18 years and Hai to 15 years in prison for the two crimes.

Regarding the crime of Forging seals and documents of organizations, the appellate court requested clarification on whether the black seal Mr. Tri used to stamp 38 documents of the company was real or not. While the defendants claimed that the black seal was real, the investigation agency collected and determined that this seal was fake. “It is necessary to clarify the time of registration, engraving and issuance of… this black seal,” the appellate court stated.

Regarding the crime of abuse of trust to appropriate property, during the interrogation and debate sessions, the lawyer defending the civil plaintiffs, Thai Duong Vocational Training Service Joint Stock Company and Thien Phu Company Limited, said that their clients had signed an investment cooperation agreement with Mr. Tri in the Huoi Chun ore mining project (Laos), as shown in the capital contribution documents. The shareholding ratio of the four parties was divided into 37%, 18% and 10% respectively (the partner in Laos held 35%). This capital contribution was direct according to the provisions of the 2005 Investment Law, because these two enterprises had contributed more than 20 billion VND to the project (shown on the receipts). Meanwhile, the representative of the Ministry of Planning and Investment of Vietnam said that the capital contribution of the two enterprises to Mr. Tri was indirect. The court found it necessary to clarify this issue.

Along with some other requests from the defense attorney, the panel of judges found it impossible to clarify in court, so they accepted part of the appeal, annulled the first instance judgment, and reinvestigated.

Mr. Thai Luong Tri (left) and Duong Xuan Hai at the appeal court.

According to the first instance verdict, on November 12, 2004, Mr. Tri (director of Thai Duong Nghe An Company) signed a contract with Thao Oong Kham Mineral Exploitation Company, led by Mr. Oong Kham Sivilay (Lao nationality, director) to explore, exploit and process ores at Huoi Chun mine, for a term of 30 years.

After that, Mr. Tri's company was licensed by the Vietnamese Ministry of Planning and Investment to invest abroad. In Laos, Mr. Tri was alsolicense to establish Lao-Viet Mineral Joint Stock Company. Mr. Tri assigned his subordinate Duong Minh Hai (deputy director) to go to Laos to apply for a business license and a private seal for the mineral company.

In early April 2008, Hai gave Tri a seal with the content of Lao-Viet Mineral Company (black seal) made by a contact in Laos. However, a month later, the police of the capital Vientiane (Laos) announced that this seal had been removed and requested that it be returned because it did not have a license to use it.

According to the court, Mr. Tri still used this seal to stamp 38 official documents of the Lao-Vietnamese mineral company, sent to Lao and Vietnamese authorities... Tri and Hai's actions were to forge seals and documents of organizations.

Also on the basis of the business contract with Thao Oong Kham Mineral Company, Mr. Tri signed with Thai Duong Vocational Training Service Joint Stock Company (Mr. Doan Van Huan as director) and Thien Phu Company Limited (Ms. Chu Thi Thanh - director, representative) to jointly implement the above project, with a total capital of 1.5 million USD. By November 12, 2007, Thai Duong Vocational Training Company contributed more than 10 billion, Thien Phu more than 11 billion VND.

In the submission sent to the Lao Ministry of Planning and Investment, the companies have re-agreed the ownership and capital contribution ratios: Thao Oong Kham Company (Laos) 35% of shares, Thai Duong Nghe An 37%, Thai Duong Vocational Training 18%, Thien Phu 10%. With this submission, the Ministry has granted a license to establish Lao - Viet Minerals Joint Stock Company and clearly identified the shareholders and share ownership ratios.

The court of first instance concluded that Mr. Tri saw great benefits from the project, and that his family had invested a lot of effort in the mining project, so he had the intention of appropriating all the shares and assets of Mr. Huan and Ms. Thanh.Mr. Tri borrowed shares from Mr. Huan and Ms. Thanh to have enough "structure" to be elected as Chairman of the Board of Directors of Lao - Viet Mineral Exploitation Company.

To completely remove Mr. Huan and Ms. Thanh as shareholders, Mr. Tri directed Hai to draft a document to send to the Lao Ministry of Planning and Investment to request a license to establish a Lao-Vietnamese Mineral Joint Venture Company. This new company is directed by Tri, holding 65% of the shares, while Mr. Kham holds 35% of the shares.

As directed, Hai only named Mr. Tri as the Vietnamese shareholder and Mr. Oong Kham Sivlay as the Lao representative in this report to submit to the Lao Ministry of Planning and Investment. Hai's actions were determined to be helping Mr. Tri appropriate 42,000 shares of Mr. Huan and Ms. Thanh.

The court of first instance held that the plaintiff's shares had been restored, but the project at Huoi Chun mine was now suspended, so it requested the authorities to consider granting foreign investment certificates to the enterprises.

According to VNE